To: Board of Supervisors
Department or Agency Name(s): Sonoma County Public Infrastructure
Staff Name and Phone Number: Johannes J. Hoevertsz, 707-565-2550
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
Sonoma County Transit - Transportation Development Act and State Transit Assistance Annual Claim of Funds
End
Recommended Action:
Recommended action
Adopt a Resolution authorizing the filing of a claim with the Metropolitan Transportation Commission (MTC) for allocation of Transportation Development Act and State Transit Assistance funds for fiscal year 2025-26 to support Sonoma County Transit and Sonoma County Paratransit services.
end
Executive Summary:
Each spring, Sonoma County Transit submits its claim to the Metropolitan Transportation Commission for available Transportation Development Act (TDA) and State Transit Assistance (STA) funds for the upcoming fiscal year. TDA and STA funds can be used for both operating and capital purposes and represent the largest source of funding used to support Sonoma County Transit and Paratransit operations.
Discussion:
In 1971, the State of California established two funding programs that have become a primary source of transit operating and capital funding assistance for large and small transit systems statewide. The programs, referred to as Transportation Development Act (TDA) and State Transit Assistance (STA), provide on-going funding support to eligible transit operators.
TDA funds represent a quarter percent of the State’s base sales tax whose revenues return to the County on a per-capita basis. Sonoma County Transit receives TDA funds for the unincorporated area, as well as, from most cities in the county to support Sonoma County Transit and Sonoma County Paratransit services. For FY 2025-26, Sonoma County Transit is estimated to receive $12,728,703 in TDA funds, 47% of which comes from incorporated area contributions. STA funds represent a portion of sales tax revenues generated by the sale of diesel fuel. In FY 2025-26, it is projected that Sonoma County Transit will receive $3,167,515 in STA funds.
TDA and STA funds have long been the primary sources of transit operations funding. For FY 2025-26, these funds account for approximately 76% of the combined fixed-route and paratransit operating budget. The remaining transit funding comes from federal grants, local Go Sonoma funds, passenger fares, and other miscellaneous revenues.
For FY 2026, combined TDA and STA revenues have declined by $1,236,633 (7.32%) compared to FY 2025. This decrease is primarily due to a sustained decline in TDA sales tax revenues over the past seven quarters and a sharp drop in STA revenues from diesel fuel taxes. To offset this trend, transit will draw approximately $1.3 million from its TDA reserve to support FY 2026 operations.
A minor 2.5% service reduction is planned for schedules effective In June 2025 to help lessen the impact on use of reserve funds. Maintaining current service levels would result in a projected $1.8 million deficit, whereas the anticipated reduction in service reduces that deficit to approximately $1.3 million. With operating costs expected to rise in FY 2027, under a new operations contract, it is prudent to make minor service reductions now.
Minor service reductions are anticipated as follows:
- Cotati/Rohnert Park local routes 10 (2 trips) and 12 (2 trips)
- Route 20 - Monte Rio to Santa Rosa (2 trips)
- Route 42 - Industry West Park to Downtown Santa Rosa (2 trips)
- Routes 44 & 48 - Santa Rosa to Petaluma (3 trips)
- Route 60 - Santa Rosa to Cloverdale (1 trip)
- Route 62 - Santa Rosa to Windsor Depot (2 trips)
Given that significant growth in sales tax revenue or new funding sources are unlikely over the next three years, the modest service reduction helps preserve TDA reserves for future use.
At its April 14, 2025, meeting, the Sonoma County Transportation Authority (SCTA) approved a contribution of $1,926,031 from Sonoma County to Golden Gate Transit (GGT) for its regional bus services serving the county. This amount represents approximately 52% of the county’s contribution to GGT in FY 2025. The funding adjustment is based on SCTA’s new formula for allocating funds to GGT’s regional services for FY 2026, a shift recommended by the Metropolitan Transportation Commission and agreed to by the Golden Gate Bridge District.
Funding levels for FY 2027 will be subject to further review by SCTA in coordination with MTC and GGT. Historically, the county’s contribution amounted to approximately 28% of its Transportation Development Act (TDA) funds. This adjustment marks a significant reduction in Sonoma County’s financial support for GGT, as directed by SCTA. Further modifications to GGT’s funding rate for FY 2027 are under consideration. These changes reflect the ongoing decline in GGT ridership compared to pre-pandemic levels, with most regional transit trips now being taken on the SMART train.
To ensure fund availability for the upcoming fiscal year, Sonoma County Transit submits a claim annually to the Metropolitan Transportation Commission. A Coordinated Claim is prepared to illustrate funding agreements with other jurisdictions in support of county-provided transit services. The following summarizes allocation of FY 2025-26 Transit Development Act and STA funds to support County transit programs:
Total FY 2025-26 TDA Available: $12,728,703
Total FY 2025-26 STA Available: $3,167,515
Total FY 2025-26 TDA/STA Combined: $15,896,218
Reallocated and Prior-Year TDA Funds claimed: $ 3,860,806
Total TDA/STA: $19,757,024
Operations Funding for Sonoma County Transit $13,723,023
Operations Funding for Sonoma County Paratransit (ADA service) $3,803,321
Operating Contract with Mendocino Transit Authority: $180,000
Capital Projects & Capital Contingency: $2,050,680
Total Claim: $19,757,024
In addition to the above, approximately $10.3 million in TDA reserve funds may be called upon during the year to cover deficits caused by lower than anticipated TDA or STA fund generation.
Strategic Plan:
N/A
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
05/14/24 - Board authorized filing a claim with the Metropolitan Transportation Commission for allocation of Transportation Development Act and State Transit Assistance funds for FY 2024-25 ($21,121,220.)
05/09/23 - Board authorized filing a claim with the Metropolitan Transportation Commission for allocation of Transportation Development Act and State Transit Assistance funds for FY 2023-24 ($17,394,648.)
Fiscal Summary
|
Expenditures |
FY24-25 Adopted |
FY25-26 Projected |
FY26-27 Projected |
|
Budgeted Expenses |
|
$19,757,024 |
|
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
|
$19,757,024 |
|
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
|
|
|
|
State/Federal |
|
$19,757,024 |
|
|
Fees/Other |
|
|
|
|
Use of Fund Balance |
|
|
|
|
General Fund Contingencies |
|
|
|
|
Total Sources |
|
$19,757,024 |
|
Narrative Explanation of Fiscal Impacts:
Transportation Development Act and State Transit Assistance funds totaling $19,757,024, and correlating expenditures, are included in the FY2025-2026 recommended budget, and no additional appropriations are requested at this time.
Narrative Explanation of Staffing Impacts (If Required):
None.
Attachments:
Resolution
Related Items “On File” with the Clerk of the Board:
None.